Single Payment Loan

AB

A single payment loan is a loan that requires the borrower to repay the entire principal amount, along with the interest, in a single payment at the end of the loan term. The correct answer is B.

Let's break down the other answer choices to better understand why they are incorrect:

A. Made for a specified period - This is a characteristic of all loans, not just single payment loans. Loans are typically made for a specified period of time.

C. At the end of which half of the payment is due - This type of loan is known as a balloon payment loan. In a balloon payment loan, the borrower makes regular payments of interest and principal, but at the end of the loan term, they must make a large payment to pay off the remaining balance. This is different from a single payment loan, where the borrower pays the entire principal and interest in a single payment at the end of the term.

D. That expires within a year - This is a characteristic of a short-term loan. A single payment loan can have a longer term, but still requires the borrower to make a single payment at the end of the term.

In summary, a single payment loan is a type of loan that requires the borrower to pay the entire principal and interest in a single payment at the end of the loan term. It is important to note that single payment loans are not commonly used in practice, as they can be difficult for borrowers to repay in full.